Why Investors Are Turning to New Technologies to Access Markets

European retail investors are increasingly turning to tokenized assets to bridge a significant wealth gap compared to the United States. According to a 2025 Global Retail Investor Study by the World Economic Forum and Robinhood, only 5% to 9% of household wealth in France and Germany is invested in securities, compared to approximately 30% in the U.S.

Why is European retail investment lagging behind the U.S.?

The disparity in capital market participation creates a long-term financial security gap for European households. While U.S. households allocate nearly a third of their wealth to securities, European participation is markedly lower. Data from the 2025 Global Retail Investor Study shows Germany at 9% and France at 5%.

This gap limits the ability of millions of Europeans to benefit from long-term market growth. Policymakers now recognize that increasing this participation is critical for retirement planning and individual wealth building across the EU.

What barriers prevent Europeans from entering capital markets?

Cost and accessibility remain the primary deterrents. Six in ten current investors (60%) reported they considered buying a share but found the price unaffordable. High entry costs effectively lock out smaller investors from premium assets.

Fees also stifle activity. The study found that 22% of non-investors were discouraged from starting altogether due to fees. Among those already investing, 47% abandoned a trade before execution because of associated costs.

Traditional market constraints further limit growth. Nearly half of retail investors (48%) reported an inability to trade specific stocks because the relevant exchange was closed, highlighting a friction point in traditional 9-to-5 trading hours.

How do tokenized assets address these investment hurdles?

Tokenized assets—digital tokens on a blockchain that provide exposure to stocks and ETFs—offer a structural alternative to traditional brokerage. These “Stock Tokens” act as derivatives reflecting the price of underlying securities.

Investors see these tools as a way to bypass legacy restrictions. According to the research, 49% of interested investors value the ability to trade at any time, while 45% are attracted by lower fees. Fractional exposure is another draw, cited by 40% of respondents as a key advantage.

Beyond public equities, tokenization opens doors to private markets. About 30% of those interested in Stock Tokens are driven by the prospect of investing in companies that are not publicly listed, a sector traditionally reserved for institutional investors.

Is there a growing demand for blockchain-based investing?

Interest in tokenization scales with education. While general awareness is low, 55% of all respondents expressed interest in Stock Tokens. This jumps to 89% among those who reported knowing a lot about the technology.

The appetite for these tools exists even among novices. 46% of respondents with no prior knowledge of tokenization expressed interest after receiving a detailed description of how the assets work.

Johann Kerbrat, SVP, GM of Crypto & International at Robinhood, stated that the EU has a “once-in-a-generation opportunity” to lead in innovation. He noted that blockchain technology can lower barriers to entry and enable more Europeans to participate in wealth creation.

Comparison: Market Participation and Barriers

What happens next for European retail markets?

The shift toward “digitally native” investing is already underway. Robinhood currently offers over 2,000 Classic Stock Tokens linked to U.S.-listed stocks and ETPs to eligible customers across the EU and EEA.

These products provide 24/5 trading and near-instant settlement, directly addressing the 48% of investors frustrated by closed exchange hours. The trend suggests a move away from traditional brokerage models toward a hybrid approach where 59% of investors use tokens alongside traditional shares and ETFs.